Housing Finance company PNB Housing Finance announced H1FY25 & Q2FY25 results Q2FY25 Financial Highights: Net profit increased by 22.6% YoY and 8.5% QoQ to Rs 469.7 crore. Net Interest Income grew by 1.2% YoY and 2.7% QoQ to Rs 668.6 crore; lower growth in NII is due to declining impact of Corporate book. The Net Interest Income for Retail segment grew by 13% YoY. Operating expenditure increased by 18.6% YoY and 4.7% QoQ to Rs 198.8 crore. Yield at 10.05% in Q2FY25 as compared to 10.03% in Q1 FY25 and 10.58% in Q2FY24. Cost of Borrowing is at 7.84% in Q2FY25 as compared to 7.92% in Q1 FY25 and 7.99% in Q2FY24. Spread on loans is at 2.21% in Q2FY25 as compared to 2.11% in Q1 FY25 and 2.59% in Q2FY24. Net Interest Margin stood at 3.68% in Q2FY25 as compared to 3.65% in Q1 FY25 and 3.95% in Q2FY24. Gross Margin, net of acquisition cost, stood at 4.09% in Q2FY25. With recovery from retail written off pool, Credit Cost was -24 bps in Q2FY25 as compared to -7bps in Q1 FY25 and 26bps in Q2FY24 H1FY25 Financial Highights: Net profit increased by 23.6% YoY to Rs 902.5 crore. Net Interest Income grew by 2.35% YoY to Rs 1,319.6 crore; lower growth in NII is due to declining impact of Corporate book. The Net Interest Income for Retail segment grew by 11.3% YoY. Operating expenditure increased by 12.5% YoY to Rs 388.8 crore • Yield at 10.04% in H1FY25 as compared to 10.59% in H1FY25. Cost of Borrowing is at 7.88% in H1FY25 as compared to 7.99% in H1FY25. Spread on loans is at 2.16% in H1FY25 as compared to 2.60% in H1FY25. Net Interest Margin stood at 3.66% in H1FY25 as compared to 3.92% in H1FY25. Gross Margin, net of acquisition cost, stood at 4.06% in H1FY25. With recovery from retail written off pool, Credit Cost was -16 bps in H1FY25 as compared to 31bps in H1FY25. ROA improved by 31 bps on YoY basis at 2.45% in H1FY25 (annualized). ROE is at 11.7% (annualized) for H1FY25 Other Highlights: The disbursements during Q2FY25 grew by 27.8% YoY and 21.5% QoQ to Rs 5,341 crore. Retail Segment grew by 28.2% YoY and 22.4% QoQ to Rs 5,341 crore. Loan Asset grew by 14.2%YoY and 3.8% QoQ to Rs 69,501 crore as on 30 th Sept 2024. Retail loans grew by 16.2% YoY and 4.3% QoQ to Rs 67,970 crore as on Q2FY25. Within Retail, affordable. Loan Asset grew by 297% YoY to Rs 2,959 crore, Emerging Markets Loan Asset grew by 22% YoY to Rs 12,545 crore and Prime segment grew by 10.7% YoY to Rs 52,466 crore as on Q2FY25. Corporate loans are at Rs 1,531 crore as on Q2FY25, reduced by 35.7% as compared to Q2FY24. Asset under Management (AUM) grew by 10.8% YoY and 3.0% QoQ to Rs 74,724 crore as on Q2FY25. The Company has 303 branches / outreach locations as on Q2FY25: Affordable business presence in 160 branches. Dedicated 50 branches for Emerging Segment. 93 branches for Prime segment. Gross Non-Performing Assets stood at 1.24% as on Q2FY25 as compared to 1.78% as on Q2FY24 and 1.35% as on 30 th Jun 2024. Retail GNPA is 1.27% as on Q2FY25 as compared to 1.74% as on Q2FY24 and 1.39% as on 30th Jun 2024. Corporate GNPA stands Nil as on Q2FY25 as compared to 2.86% as on Q2FY24 and Nil as on 30 th Jun 2024. Net NPA stood at 0.84% as on Q2FY25. NNPA in Retail segment is at 0.86%. Girish Kousgi, Managing Director & CEO said: “The Company’s focussed approach led to growth across all parameters. The Retail Asset grew by 16.2% YoY inching towards our stated guidance of 17% for FY25. Our affordable segment is performing well and crossed Rs 3,000 crore in Loan Asset in October 2024. The Company registered retail disbursements growth of 28% YoY to Rs 5,341 crore during the reported quarter i.e. Q2FY25. The portfolio asset quality continues to improve with Gross NPA at 1.24% as on Q2FY25. With the Government focus on the affordable segment (EWS and Mid income group) under PMAY-Interest Subsidy Scheme, close to 1 crore customers are expected to benefit over next 5 years. This leads to a huge opportunity for players like us with pan India presence and special focus on Affordable and Emerging Markets segment.” Result PDF